It’s the largest West African gold discovery in more than a decade; PDI’s Bankan Gold Project has a 4.2Moz Mineral Resource Estimate (MRE) defined to date. The company already has its sights set on becoming Guinea’s largest gold producer within 5 years, but that’s just the beginning.
Predictive Discovery (ASX: PDI) made waves in April 2020 with a significant gold discovery at Bankan. The company reported impressive results, including 46m @ 6.58g/t Au from 4m at North East Bankan (NEB), and two weeks later, 44m @ 2.06g/t Au from 6m at Bankan Creek (BC).
In September 2021, a maiden MRE of 3.65Moz Au @ 1.56g/t was announced, before it was expanded to 4.2Moz Au @ 1.63g/t in August 2022. Since then, the company has continued to produce spectacular drill results demonstrating a consistent ore body with improving grades at depth, and has recently upgraded 1.7Moz of the 4.2Moz MRE to the Indicated category. There is little doubt this can become a tier-1 gold mine.
Unlocking Bankan’s full potential
PDI’s strategy is to bring Bankan into production and identify other deposits within its highly prospective 356km2 of exploration tenure.
PDI has recently intensified its exploration efforts as it works towards unlocking the full potential of the Bankan permits.
The company’s exploration strategy has two key limbs: (1) drilling for “near-resource” mineralisation to add ounces to supplement future operations at NEB and BC; and (2) searching its broader landholding for the next large-scale deposit.
In relation to the first, PDI has successfully discovered an array of near-resource targets within 3km of NEB, where shallow aircore and auger drilling has delivered some outstanding results. This includes results such as 20m @ 17.8g/t and 18m @ 14.7g/t at South Bankan (SB), 6m @ 19.3g/t at 800W, 10m @ 10.5g/t at NEB Footwall, and 4m @ 6.3g/t at NEB North. An RC drilling program commenced in May 2023 to test several key targets, with encouraging initial results back from 800W including 14m @ 2.79g/t from 5m.
Regionally, PDI has a 35km long gold super structure that runs through its Bankan permits, and it’s no surprise that the NEB deposit sits directly adjacent. Numerous targets have been identified along this structure, and exploration is ramping up in 2023. The initial focus is on the Argo targets, located 15-20km north of NEB, where a comprehensive targeting exercise has been completed based on auger geochemistry drilling, geophysics programs and structural interpretation. 11 RC drill targets have been identified, including five priority 1 targets. RC drilling commenced at Argo in June 2023, which the initial program to include approximately 50 holes for 7,000m – does another NEB lie below the surface?
Sustainably developing a major gold mine
With a focus on sustainable development, PDI has initiated studies and programs aimed at progressing Bankan towards production in an environmentally and socially responsible manner. These include baseline social, environmental, and biodiversity studies as part of an extensive Environmental and Social Impact assessment (ESIA).
ESG is increasingly important for all mining companies, and PDI is adopting a robust approach by conducting an ESIA aligned with Guinean regulations and international best practice (IFC Performance Standards and Equator Principles).
The ESIA is a key input into the permitting process for Bankan, together with the Scoping Study that is due to be completed in late 2023 to allow a mining permit to be granted in the first half of 2024.
With part of the Bankan Project located in the Outer Buffer Zone of the Upper Niger National Park, securing the mining permit will be a key milestone for PDI. No red flags have been identified to-date, and PDI has strong support from the Government and local communities.
PDI has a unique opportunity to improve the environmental outcomes in the region, especially in the Park’s Core Conservation Area. Collaboration with the Park is already underway, including to upskill Park officials through participation in ecological surveys and funding of the Park’s annual fire management campaign.
Also crucial for the Scoping Study and therefore the permitting process, is an update of the MRE in Q3 2023. The main focus of the update will be to bring more of the resource into the Indicated category, and PDI’s recent infill drilling at NEB has yielded positive results such as 29m @ 5.2g/t down dip from prior 28m @ 5.2g/t and up dip from prior 24m @ 8.8g/t, indicative of the area’s consistent high-grade. Results from NEB and BC are also showing potential for the MRE update to deliver an incremental increase in ounces.
The free-milling Bankan 4.2Moz MRE has already exceeded the critical mass for a viable mining project, with the project’s future likely to include underground mining. The deepest hole to date at NEB is ~1km below surface and mineralisation remains open below.
Not only is the scale and potential of PDI’s gold resources exciting, the Company’s strong emphasis on ESG is of an impressive calibre. PDI’s prospects look very promising indeed.
Team – African mine builders
Along with the impressive geology, PDI has an experienced management team with a track record of generating high shareholder returns. Managing Director Andrew Pardey is a geologist with more than 30 years of experience in exploration, project development, construction, and operation, particularly in Africa. He was the CEO of Centamin, a $2 billion LSE/TSX listed company that developed Egypt’s first large-scale mine, the 450koz per annum Sukari Gold mine. Pardey played a major role in bringing the Sukari mine into production, having been involved during the transition of the operation from construction to production. He has also held senior management roles at the Anglogold-Ashanti’s Siguiri Mine and Nordgold’s Lefa Mine, both also located in Guinea, developing excellent in-country contacts and understanding of the local operating environment.
Led by Country Manager Marlyatou Balde, the in-country management team brings valuable expertise to PDI’s success. The team has extensive experience in Africa across all key disciplines of geology & resources, environmental & social, feasibility studies, funding, development and operations. And with a newly strengthened regional exploration team, including a dedicated regional lead, the company is poised for even greater success.
PDI’s Bankan Gold Project in Guinea is a significant discovery that has all the hallmarks of a future Tier-1 gold mine. With the positive outlook for gold prices and increasing importance of responsible mining practices, PDI has the potential to generate substantial value for shareholders and stakeholders alike, setting the standard for economic and social development of mining projects in West Africa.
